Tie Rack planning to close 44 stores in further evidence of challenges on the
high street

Tie Rack is planning to close its 44 UK stores, putting approximately 200 jobs at risk.

The retailer has launched a closing down sale at its high street stores with a view to the sites closing by the end of the year, although it is in negotiations with airport operators to try to keep its airport outlets open.

The demise of Tie Rack is the latest example of the pressure on retailers as consumer spending remains restrained.

A spokesman for Tie Rack said: “Following a period of prolonged decline in Tie Rack’s fortunes, it is with regret that we announce this closing down sale. Management are working with staff to provide support during this difficult time.”

The Fingen Group, Tie Rack’s Italian owners, are understood to have asked accountancy firm Grant Thornton to look for prospective buyers of around 30 overseas stores. They will retain ownership of Tie Rack’s online business.

Tie Rack was founded by South Africa entrepreneur Roy Bishko in 1981 and had more than 450 shops by 1998.

However, since then, the company has faced a long battle against fierce competition on the high street and declining sales. The most recent financial results show the company was losing £7m a year.

James McGregor, a retail consultant at Retail Remedy, said: “Tie Rack was a force to be reckoned with in its day. But its day was the eighties and nineties and in recent years it has felt increasingly outdated.

“Tie Rack is another brand with an eighties feel and in the current marketplace that can rapidly prove fatal. It’s another example of a retailer that has failed to move with the times.

“Not only does its brand feel outdated but its product offering is also stuck in the past. It’s a brand that younger people today simply don’t relate to.

“If you drew up a list of high street retailers that were under threat from changing consumer behaviour and trends, both Barratts and Tie Rack would have been on it.”

In a statement, Grant Thornton said: "We can confirm that Grant Thornton UK LLP has been engaged to advise Tie Rack Retail Group Limited on the sale of its international business.

"We are in discussions with a number of interested parties but at this stage, cannot comment further. We are not involved in any activity relating to the possible closure of any part of the group."